E-commerce affecting offline industries
As e-commerce grows, the industry is having a profound effect on multiple industries throughout the supply chain, including those you might not consider part of that process at first glance.
In November 2015, we discussed how e-commerce is driving growth in the warehousing and some elements of the logistics industry. But what about other parts of the marketplace? As you will see, e-commerce continues to drive growth and change in several other industries.
Companies that manufacture packaging see effects on both ends of the spectrum. On one hand, there’s an increased push for more sustainable packaging. Less is more, making it easier to fit more items in a single shipping box.
At the same time, the need for packing materials to keep items safe and intact while in transit is seeing a rapid increase. According to Logistics Management, experts project a 5% increase in protective packaging demand every year through 2019.
Trucking is another industry being noticeably affected by e-commerce. Unlike many industries, truck driving is immune to globalization and automation because you can’t outsource truck driving to overseas, and robots can’t drive.
This means that as more people want items shipped to their local store or their front door, the more the trucking industry must step up its game. The problem with this scenario is that the trucking industry continues to see a truck driver shortage. More jobs are becoming available, yet fewer people are interested in filling those jobs.
Speaking of jobs, e-commerce has made it necessary for thousands of new jobs as people process orders electronically then yet another staff, usually at a different location, work to fulfill the order. More fulfillment centers have come under construction, which affects the construction industry. Instead of building smaller bricks and mortar stores, there’s more of a call for large warehouse spaces.
On Time Logistics is a premier logistics and warehousing provider in Northwest Arkansas, Tulsa, and Little Rock.